Trump says tariffs coming on steel and aluminium

President Donald Trump has announced plans to impose a 25% import tax on all steel and aluminum entering the U.S., with Canada set to bear the brunt of the impact.

Trump also stated that later in the week, he would make a further announcement regarding reciprocal tariffs on countries that tax U.S. imports, though he did not specify which countries would be targeted or whether any exemptions would apply. "If they charge us, we charge them," Trump declared.

This move escalates Trump's trade policy, which has already led to retaliatory actions from China. Canada and Mexico are among the U.S.'s top steel and aluminum trade partners.

The U.K. is expected to be less affected, as it has limited trade in steel with the U.S., but the trade group UK Steel warned that any U.S. tariffs would deal a "devastating blow" to the industry.

U.S. steel production is a highly politicized issue, with some arguing the country needs to produce enough high-quality steel to support its military in the event of a national emergency, without relying on imports.

In his first term, Trump implemented tariffs of 25% on steel imports and 10% on aluminum imports from Canada, Mexico, and the European Union. While the U.S. reached a deal with Canada and Mexico to lift these tariffs a year later, the EU's import taxes remained until 2021.

These tariffs increased costs for U.S. industries such as car manufacturers and soft drink makers who use aluminum in cans, with the added costs eventually passed on to consumers, according to the Tax Foundation think tank.

On Monday, Trump said that his new tariffs would apply to all steel and aluminum imports. "Any steel coming into the United States is going to have a 25% tariff," he stated.

In response, Ontario Premier Doug Ford criticized Trump, accusing him of "shifting goalposts and constant chaos, putting our economy at risk" in a social media post. Ontario is a major hub for Canadian steel production.

Political adviser Catherine Loubier noted that while she believes Trump’s threats are serious, the deep economic interconnections between the U.S. and Canada might provide a way to resolve the issue. “Hundreds of thousands of jobs in the U.S. rely on steel and aluminum inputs from Canada," she explained. "There’s a lot at stake, and no one is winning with these tariffs.”

US steel imports

Top six countries US imported steel from in 2024, tonnes

Source: US Department of Commerce

The European Union stated it had not received any official notice from the U.S. regarding new tariffs but emphasized that it saw "no justification" for imposing such tariffs on its exports.

"We will take action to protect the interests of European businesses, workers, and consumers from unjustified measures," the EU said.

Australian Prime Minister Anthony Albanese announced that he would advocate for an exemption from the tariffs, similar to the one Australia secured during Trump's first term.

Trump's remarks led to a decline in shares of major South Korean steel and automotive companies, as South Korea is a significant exporter of steel to the U.S.

In response to market uncertainty, the price of gold—a traditional safe-haven asset during economic turmoil—rose to a record high of $2,903.08 per ounce on Monday.

Tariffs are a central part of Trump's economic vision - he sees them as a way of growing the US economy, protecting jobs and raising tax revenue.

The result has been a flurry of announcements since his inauguration.

• Earlier this month, Trump threatened to impose import duties of 25% on Canadian and Mexican products, but later later delayed that plan for 30 days.
• He also brought in new US levies of 10% on all Chinese goods coming into the US.
• Beijing retaliated with its own set of tariffs which took effect on Monday.
• These included controls on imports of US coal, oil, gas, agricultural machinery, large-engine cars, and controls on exports of 25 rare metals needed for electric and military equipment.
• Earlier this month, Trump said that tariffs on the EU would come "pretty soon", but suggested the UK could avoid them.
• Trump has also said the US will introduce reciprocal tariffs on "Tuesday or Wednesday" on all countries that tax US imports, which will match the tariff rates levied by each country. "It'll be great for everybody, including other countries," he said.

Chinese government spokesperson Guo Jiakun said: "There are no winners in a trade war or tariff battle. What is harmed are the interests of the people of both countries."

He urged the US to "correct its erroneous approach and stop politicising and weaponising economic and trade issues".

Victor Gao, a Chinese diplomat and economist, told the BBC that China's move to put controls on rare metal exports were "in direct retaliation against the US imposition of policies denying Chinese access to semiconductor chips and many other AI developments".

"And this is truly tit-for-tat because China wants to have free trade for all of these things."

However, he added that China would not be affected too much because of US shoppers' demand for cheap Chinese goods.

"[Chinese goods] are very much affordable and competitive even with a 10% tariff," he said.

During his trip to New Orleans, Trump signed a proclamation declaring February 9th as "Gulf of America" Day to mark his decision to rename the Gulf of Mexico. This announcement came as his plane flew over the body of water.

Mexico has argued that the U.S. cannot legally rename the Gulf, citing UN regulations that state a country's sovereignty extends only 12 nautical miles from its coastline.

Trump also reiterated his controversial and improbable suggestions that the U.S. could take control of Canada and the Gaza Strip. He claimed Canada would be better off as the "51st state" and expressed his "commitment to buying and owning Gaza."